Down Payment Bonds can be a valuable and useful tools for project marketers interested in selling units faster to more qualified buyers. In this presentation we present the simple ways that a Down Payment Bond can help these real estate professionals achieve their objective faster.

1. Down Payment Bonds for Residential
Project Marketers for Pre Sales
Essential Knowledge For Real Estate Sales Professionals
About Down Payment Bonds and How They Can Be
Used to Generate More Sales During Pre-Construction Marketing

2. Why would I recommend Down
Payment Bonds as an Option?
With a down payment bond, there is no need for your
purchaser to use cash for the required down payment when
purchasing a property that may not be complete for some
time. By providing this option to your clients, you may well
find out that they would make a faster and more favorable
decision due to this option you have provided them.

3. Why would I recommend Down
Payment Bonds as an Option?
If your buyers do not need to withdraw cash from their savings or
investments, or obtain financing by using equity in another
property and were provided this option instead, you eliminate a
lot of barriers of entry for your clients.
This option would create a more willing buyer !
A purchaser now has another option for their down payment, that
they did not have before.

4. What is the benefit to the Buyer?
Down payment bonds replace the requirement to outlay a cash
deposit, allowing buyers to keep their money working for them
right up until closing. Then, at closing, they pay the property’s full
purchase price.
For many of today’s property buyer’s, the cash required for the
deposit is often tied up in their current home or other investments.
This can mean either expensive bridging finance or borrowing
from a finance company/bank at high interest rates.
Down Payment Bonds provide flexibility for the purchaser !

5. What is the benefit to the Buyer?
Regardless of where the finance is obtained, interest charges,
establishment fees and other up-front costs connected with the
loan can be expensive and time-consuming to arrange.
For buyers that do have the cash available for the deposit, they
would prefer to tie up a small portion of this, rather than the full
deposit amount. This allows their money to continue working for
them, right up until closing when they pay the full purchase price.
A smart, safe and secure way for the purchaser !

6. What is the benefit to a Seller, Developer
or Construction Financier?
A purchaser that has been approved for a down payment bond,
assures the sellers and developers that this buyers has been pre
qualified as having the financial capability to not only meet their
existing financial commitments, but also are able to complete the
transaction. If the buyer defaults under the Purchase and Sale
agreement, the seller is entitled to claim / retain the down
payment bond amount from QBE Insurance.
This amount will be paid to the seller nominated in the agreement
after QBE Insurance is provided with the request for payment and
notice of termination of the Purchase and Sale agreement. QBE
Insurance will then seek recovery from the buyer via the Indemnity
Agreement, which is signed by the buyer as part of the
application form.

7. What is the Indemnity Agreement that is
included in the Application Form?
DPO’s Down payment bonds are issued on the understanding that
the buyer will pay the seller the down payment bond amount on
the closing date of the contract (as the buyer will pay the full
purchase price of the property).
The Indemnity Agreement is a legally binding right the buyer gives
to QBE Insurance to pursue recovery against the buyer for any
part of the Down payment bond amount that must be paid to the
seller by QBE if the buyer defaulted under the Purchase and Sale
agreement.

8. So Down Payment Bonds are insured?
Yes. All DPO down payment bonds are underwritten by QBE
Specialty Insurance Company, a part of the QBE Insurance Group
Limited (QBE).

9. Who is QBE Insurance Group?
QBE Insurance Group Limited is one of the top 25 insurers and
reinsurers worldwide with operations in all key global insurance
markets with operations in 49 countries with over 13,500 staff
worldwide. Rated "A" (Excellent) by A.M. Best and "A+" by
Standard and Poor's.

10. How would my client qualify for
a Down Payment Bond?
Eligible applicants must be US citizens. Applicants can be
individuals or couples. The applicant may be an existing property
owner who wishes to purchase another property or investors who
wish to expand their property portfolio.
To qualify for a Down payment bond an applicant will complete a
DPO application form and supply the supporting information
required as noted in the application form.
DPO will then underwrite and assess the application and
determine whether the applicant has the financial capacity to
be able to complete on the new property purchase taking into
account the applicants current overall financial position.

11. Connect with Us!
Down Payment Options
410 S. Rampart Boulevard
Suite #390
Las Vegas, NV 89145
Tel. 1.702.726.6818
info@downpaymentoptions.com
www.downpaymentoptions.com